Commercial Van Insurance
Commercial van insurance is critical for any business operating vans. Businesses that need to transport goods, equipment, or personnel depend on their commercial vehicle to provide them with the necessary mobility. Vans are a prevalent commercial vehicle, but they can become a liability for any business if they are not appropriately insured. Insurance for commercial vans covers losses sustained from motor vehicle accidents and physical damage to or theft of the vehicle itself.
However, other essential types of coverage may be optional extras or available with more expensive policy options. The risks are different with commercial van insurance than with car insurance, so business owners should be familiar with the details before choosing a company for their policy.
Do I Need Commercial Van Insurance?
The first thing to figure out is how many vans or trucks your company will need to insure and if you want to insure them individually or as part of a fleet. Since the cost and risks of auto insurance depend on things like the driver’s history and credit score, it may be possible to get a reasonable rate by insuring every vehicle in the fleet under just one policy. This can also simplify administration because policies can be kept in one place, and there’s only one deductible that all drivers will pay instead of per-vehicle deductibles. In general, the greater the number of vehicles in a fleet, the better the rates will be.
So if a business has five or more vehicles to add to their policy, they may want to take out a fleet policy rather than individual ones. Keep in mind that adding extra drivers to a fleet policy can also lower costs because each driver lowers the average age of all the drivers and therefore decreases the risk rating.
What is Commercial Van Insurance
Insurance for commercial vans also covers losses sustained from motor vehicle accidents and physical damage to or theft of the vehicle itself. However, other essential types of coverage may be optional extras or available with more expensive policy options. The risks are different with commercial van insurance than with car insurance, so business owners should be familiar with the details before choosing a company for their policy.
Companies that own more than one van often insure each vehicle individually to keep the costs down. For example, if one of your vans is involved in an accident, you can be reimbursed for the repairs. However, even with individual policies, companies should understand all of the circumstances before they sign up.
Whatever type of insurance policy you choose, there are some basic things you need to know about any situation involving an insured vehicle. First, insurance companies will ask for the driver’s license number and the driver’s record details. This includes how many years they’ve been licensed to drive, whether or not they’ve had any serious accidents in the past, and if so, how much they were at fault for the accident.
What Types of Commerical Van Insurance Are There?
Options for commercial van insurance may include liability coverage, physical damage coverage, and medical benefits for drivers and passengers in the van. With liability, the van owner can be reimbursed for any accident-related expenses that weren’t paid by their insurance policy or others who were at fault. Physical damage will pay for damage that wasn’t caused by accident, such as hail or fire. Medical benefits will cover medical costs incurred by drivers and passengers in an accident.
Other options to consider when choosing van insurance for your business include personal injury coverage, for accidents that involve passengers of your business, and uninsured motorist coverage, for accidents where the driver of the other vehicle did not have insurance. If your business transports high-value goods or materials, you should consider adding cargo insurance. Cargo insurance covers loss or damage to items being transported in the van.
A commercial van insurance policy will typically also include a personal injury protection (PIP) clause. This is similar to PIP on an auto policy, but with some key differences that can significantly impact how much you pay for your policy in both the short term and long term. If a driver is injured in a van accident, under PIP, your insurance company will generally pay for basic medical expenses for injuries that occur regardless of fault. However, that’s not always the case. If you’re found to be at fault for an accident that results in injury or death to a passenger in your van, your insurance company may decline to cover medical treatment. In this case, the driver will have to pay the medical bills out of pocket regardless of their policy limits or deductible.
In addition to liability and personal injury protection clauses, other vehicle-specific exclusions on commercial van insurance plans can make coverage even more challenging to obtain. Generally, suppose you limit the coverage on your policy to the minimum legal requirements. In that case, your insurance company will likely not cover you for any accidents that do not meet those minimum standards.
Commercial van insurance is essential for companies that transport goods or materials of any kind. Such companies can become targets for theft, vandalism, or even hijacking. While the risks of commercial van insurance are more significant than auto coverage for small vans, there are still some basic things you should know to make sure you’re fully protected.
Find out more about the importance of insurance here.
Other useful links about business insurance:
Business Interruption Insurance
Hospitality and Tourism Insurance
Transport and Logistics Insurance
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